FX.co ★ Trading Signal for GBP/USD on June 10-13, 2022: sell below 1.2507 (21 SMA)

GBP/USD is trading at 1.2497 with a bearish bias. It could be its third consecutive day with a downtrend if the pound sterling drops below 1.2507.

On the daily chart, we can see that the pound sterling is trading near a critical point.

The level of 1.2507 has become a key zone, the 21 SMA is located there. If in the next few hours, the GBP/USD pair consolidates above this level, it may resume an upward movement. It could reach zone 3/8 Murray around 1.2573.

Since May 27, the pound sterling has been forming a downtrend channel, trading between highs and lows. It is now below the 21 SMA.

If in the next few hours, GBP continues to trade below 1.2490, it may drop to 2/8 Murray at 1.2451 and could even reach the 50% Fibonacci at 1.2420.

Despite the correction made by the GBP/USD, from the low of the year at 1.2155 to 1.2670, it still has a bearish bias. It is below 4/8 of a Murray around 1.2695, which is now a strong barrier.

The eagle indicator is trading above an uptrend channel which favors a recovery of the pair in the next few days.

In the short term, the first resistance of the GBP/USD would be the top of the bearish channel around 1.2573 where it is also located 3/8 Murray. On the other hand, the supply zone is around 1.2490 and could drop to support of June 7 at 1.2430, and could reach 61.8% around 1.2355.

Our trading plan for the next few hours is to sell GBP only if it breaks below 1.2507 with targets at 1.2451 and 1.2420. According to the daily chart, the pound sterling is in a bearish channel. The downward pressure is likely to continue in the coming days.